Boomers Got Hooked on Stocks. Now They Can’t Let Go.

Most boomers I have talked to don't even own any stock. And a few tried it before I was born, got burned, and never ventured back again.


It's getting hard for me to find one who ever had a portfolio of stocks. Maybe it's just the places I've been to. I've had multiple fathers my whole life, and they all would claim that only idiots buy stocks, and you will lose EVERYTHING. I'd have to hear over and over how idiots lost all their money in 1929 and 1987 because... only idiots gamble on stocks. There was no such thing as 'investing' in stocks.
 
The_Krakenite said:
Most boomers I have talked to don't even own any stock. And a few tried it before I was born, got burned, and never ventured back again.


It's getting hard for me to find one who ever had a portfolio of stocks. Maybe it's just the places I've been to. I've had multiple fathers my whole life, and they all would claim that only idiots buy stocks, and you will lose EVERYTHING. I'd have to hear over and over how idiots lost all their money in 1929 and 1987 because... only idiots gamble on stocks. There was no such thing as 'investing' in stocks.
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What if anything are they investing in?
Pretty well everyone I know has some sort of TFSA or RRSP that is probably managed by a financial advisor (Mutual fund salesperson) or their employer.
If they have some sort of company pension plan they are probably invested in stocks.
Canada pension plan is invested in stocks.
 
The_Krakenite said:
Most boomers I have talked to don't even own any stock. And a few tried it before I was born, got burned, and never ventured back again.


It's getting hard for me to find one who ever had a portfolio of stocks. Maybe it's just the places I've been to. I've had multiple fathers my whole life, and they all would claim that only idiots buy stocks, and you will lose EVERYTHING. I'd have to hear over and over how idiots lost all their money in 1929 and 1987 because... only idiots gamble on stocks. There was no such thing as 'investing' in stocks.
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People who were investing during the 20's aren't boomers. LOL They are Edwardians. Are you sure you were talking to a live person? LOL

The 20's and the 80's are both periods that had the most imperfect regulations rules though that did not protect investors adequately. The 20's was especially bad. This was where insider trading and various market manipulations that are illegal today were all accepted. There was no GAAP and adequate auditing back then either. People were cooking the books. The 1987's stock market crash happened because there was no circuit breaker rules. In fact it was the Black Monday stock market crash that gave birth to the circuit breaker rules. Without adequate investor protection regulations and market protection mechanisms, of course people get burned. The stock market has come a long way since then.
 
TheDawn said:
It's not just the boomers that are overinvested in stocks. Everybody is overinvested in stocks. We don't have a choice. There are no financial assets that have experienced such a high rate of returns just via passive investment. With inflation rates so high, the only rate of return that comes the closest to beating the inflation rates is that of stocks. It's also easier to invest in stocks because it's of companies that we are familiar with many of them producing products and providing services that we use and employ every day.
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But in 2022 when inflation was high stocks went down.
 
mervyn said:
unless you are a farmer, not many are putting commodities into their portfolio unless it is an etf. Bill Gates could buy all the farmlands he wants but pretty sure his golden goose is still in his stocks.
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%%
SPY [S&P 500]is a benchmark most cant beat, maybe 20% can, but not the same 20% even in 10 years.
CANE has a great YTD sugar hi; 10 year SPY beats it all to bits.
CANE has a long term chart only a candy co or active trader could love:caution::caution:
It has to be market logic + reasonable , some employ family in profit share business.
They do the giving while they're living/knowing where its going.
One farmer printed up his own bags with green cool camo + made a mint most likely, selling wheat to the feed store.
 
ZBZB said:
But in 2022 when inflation was high stocks went down.
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Who buys stocks with a one year time horizon?

Any given stock or index could go down and stay down for a year. Long term the price will reflect the underlying business, but on short time horizons, the price could do anything.

Then there's the short term capital gains issue.

I say, look for good fundamentals and hold for years.
 
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